Buy Mahindra and Mahindra; target of Rs 3456 Prabhudas Lilladher

Prabhudas Lilladher's research report on Mahindra and Mahindra

We attended the unveiling of M&M’s new BEVs based on its INGLO platform, namely, BE 6e and XEV 9e. Introductory models of the BEVs will feature 59kWh batteries, which shall provide a range of ~535-542km, while higher end of the vehicles shall feature 79kWh batteries with a range of ~656-682km. Both models are packed with premium features such as ADAS, large storage space and interactive instrument clusters, surpassing competitors in the space. The bookings are expected to commence from Jan’25, while the retail is anticipated to begin from Feb/Mar’25. Both BE 6e and XEV 9e have a wheelbase of 2,775mm, which allows both models to be manufactured on the same production line at the Chakan plant, Pune. M&M’s existing UV capacity is at ~54k units/month. It aims to increase BEVs capacity by ~10k units by the end of FY25.

Outlook

We retain our ‘BUY’ rating with a TP of Rs3,456 (previous Rs3,458) valuing it at 26.5x on its Sep’26E core EPS, and Rs229 for its EV business and Rs411 for its listed subsidiaries.

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